(a) Margin loan data are for December 2006, and exclude loans over
$10 million but include some margin loans to business. Margin loans
feature in both revolving and fixed credit owing to differences in
reporting across lenders.

Source: RBA

Table 2: Banks' Business Lending

December 2006, by loan size

Loan size

Level$b

Share of totalPer cent

Year-ended growthPer cent

Less than $500,000

89.9

18.6

−2.1

$500,000 to $2 million

83.3

17.2

16.5

Greater than $2 million

310.4

64.2

27.6

Source: APRA

Table 3: Banks' Annual Profit Results(a)

2006, five largest banks, consolidated

Level$b

Growth(b)Per cent

Per cent of average
assets

Income

50.1

4.6

3.3

Net interest income

29.8

–

2.0

Net income from wealth management

6.3

–

0.4

Other non-interest income

14.0

–

0.9

Expenses

Operating expenses

23.8

−3.3

1.6

Bad and doubtful debts

1.9

0.1

0.1

Profit(c)

Net profit before tax

24.4

14.1

1.6

Net profit after tax

17.0

12.4

1.1

(a) Year to September for ANZ Banking Group, National Australia Bank, St
George Bank and Westpac Banking Corporation; year to June for Commonwealth
Bank of Australia
(b) Some items are not directly comparable due to the introduction
of IFRS
(c) Before outside equity interests

Sources: Banks' annual reports

Table 4: Australian-owned Banks' Foreign Exposures

December 2006, ultimate risk basis

Total

of which:

Level
$b

Share
Per cent

Cross-border
$b

Local
$b

New Zealand

201.5

46.0

5.8

195.7

United Kingdom

107.0

24.4

22.7

84.3

United States

43.6

10.0

28.2

15.4

Other developed countries

54.9

12.5

49.7

5.2

Developing countries

18.1

4.1

11.3

6.8

Offshore centres(a)

12.5

2.8

7.4

5.0

Other

0.4

0.1

0.4

0.1

Total

437.9

100.0

125.4

312.5

Memo: Per cent of total assets

28.5

8.2

20.3

(a) Includes Hong Kong and Singapore

Source: APRA

Table 5: Traded Market Risk

Four largest banks, annual average value-at-risk, per cent of shareholders' funds(a)

2004

2005

2006(b)

Interest rate

0.02

0.02

0.02

Foreign exchange

0.01

0.01

0.00

Other(c)

0.02

0.01

0.02

Diversification benefit

−0.01

−0.01

−0.01

Total

0.04

0.04

0.04

(a) Value-at-risk is calculated using a 99 per cent confidence interval
and one-day holding period.
(b) Shareholders' funds in 2006 are reported under IFRS.
(c) Other market risks include commodity, equity, prepayment, volatility
and credit-spread risk.

Sources: Banks' annual reports

Table 6: Long-term Ratings of Australian Banks(a)

As at 22 March 2007

Current

Last change

Direction

Date

Adelaide Bank

BBB+

↑

October 2004

AMP Bank

A−

↑

August 2004

ANZ Banking Group

AA

↑

February 2007

Arab Bank Australia

A−

–

January 2007

Bank of Queensland

BBB+

↑

April 2005

BankWest

AA−

↑

August 2006

Bendigo Bank

BBB+

↑

February 2005

Commonwealth Bank of Australia

AA

↑

February 2007

HSBC Bank Australia

AA

↑

July 2006

ING Bank (Australia)

AA

↑

August 2005

Macquarie Bank

A

–

November 1994

National Australia Bank

AA

↑

February 2007

St George Bank

A+

↑

January 2006

Suncorp-Metway

A+

↑

March 2007

Westpac Banking Corporation

AA

↑

February 2007

(a) Local currency

Source: Standard & Poor's

Table 7: Financial Strength Ratings of Selected Large Insurers

As at 22 March 2007

Allianz Australia Insurance

A+

Insurance Australia

AA

QBE Insurance Australia

A+

Suncorp-Metway Insurance

A+

Vero Insurance (Promina)

A+

Source: Standard & Poor's

Table 8: Assets under Management

December 2006, consolidated

Level$b

Share of totalPer cent

Year-ended growthPer cent

Superannuation funds

596.5

54.4

20.1

Life insurers(a)

209.5

19.1

6.1

Other managed funds

289.9

26.5

11.6

Total

1095.9

100.0

14.9

(a) Includes superannuation funds held in the statutory funds of life insurance
offices

Source: ABS

Table 9: Financial Soundness Indicators for Australia

Per cent (a), 2005(b)

Indicator

Australian-owned banks(c)

All banks(c)

CORE SET

Banks

Capital adequacy

1

Regulatory capital to risk-weighted assets

10.2

11.3

2

Regulatory Tier 1 capital to risk-weighted
assets

7.5

7.6

3

Non-performing loans net of provisions to
capital

4.6

4.4

Asset quality

4

Non-performing loans to total gross loans

0.6

0.6

5

Sectoral distribution of loans

–

(d)

Earnings and
profitability

6

Return on assets(e)

1.8

1.4

7

Return on equity(e)

25.3

21.6

8

Interest margin to gross income

41.9

50.5

9

Non-interest expenses to gross income

58.4

52.9

Liquidity

10

Liquid assets to total assets(f)

9.8

13.1

11

Liquid assets to short-term liabilities(f)

22.5

25.1

Sensitivity to
market risk

12

Net open position in foreign exchange to capital(g)

–

0.8

ENCOURAGED SET

13

Capital to assets

6.9

7.2

14

Large exposures(h)

69

189

15

Geographical distribution of loans

(d)

–

16

Gross asset position in financial derivatives
to capital

42.1

36.1

17

Gross liability position in financial
derivatives to capital

40.2

35.1

18

Trading income to total income

4.8

5.9

19

Personnel expenses to non-interest expenses

39.7

49.6

20

Spread between reference lending and deposit rates (in basis points)

293.6

267.2

21

Spread between highest and lowest interbank rate (in basis points)

0.0

–

22

Customer deposits to total (non-interbank) loans

–

51.9

23

Foreign currency denominated loans to total loans

–

4.5

24

Foreign currency denominated liabilities to total liabilities

–

20.2

25

Net open position in equities to capital

–

–

Other financial
corporations

26

Assets to total financial system assets

–

26.2

27

Assets to GDP

–

168.8

Non-financial
corporations

28

Total debt to equity(i)

–

74.6

29

Return on equity(i)

–

14.2

30

Earnings to interest and principal expenses

–

369.6

31

Net foreign exchange exposure to equity(g)

–

11.9

32

Number of applications for protection from creditors

–

646

Households

33

Household debt to GDP

–

102.8

34

Household debt service and principal payments to income(j)

–

12.0

Market liquidity

35

Average bid-ask spread in the securities market (percentage of mid-point
price)

–

4.5

36

Average daily turnover in the securities market(k)

–

2.5

Real estate
markets

37

Real estate prices (annual percentage change)

(i) Residential real estate prices

–

2.2

(ii) Commercial real estate prices(l)

–

11.8

38

Residential real estate loans to total loans

56.5

–

39

Commercial real estate loans to total loans

10.4

–

(a) Unless otherwise indicated.
(b) Unless otherwise indicated, for stock data, reference date is 31
December 2005; flows data cover the year ending 31 December 2005.
(c) The data for Australian-owned banks are globally consolidated, i.e.
the domestic operations and overseas branches and subsidiaries are
included. The data for all banks include all banks with operations in
Australia. The data are reported on either a Licensed ADI or domestic
books basis. Licensed ADI data include overseas branches; domestic books
data essentially covers the banks' assets and liabilities in
Australia. For more information, see Australia's FSI metadata on
the IMF's website http://fsi.imf.org/CountryPage.aspx?CtyId=193.
(d) Data for this indicator are presented in Table
10 below.
(e) Before tax and extraordinary items.
(f) Using the ‘broad measure’ of liquid assets as defined in
the IMF's Compilation Guide on Financial Soundness Indicators.
(g) Data are as at March 2005.
(h) Consolidation basis is not applicable.
(i) Data presented on an aggregated resident-based approach (domestic
consolidated basis).
(j) Data presented on a ‘domestic books’ approach (i.e. only
enterprises resident in Australia are included and all overseas branches
and subsidiaries are excluded from the reporting unit).
(k) Debt-service payments only.
(l) Average for year to June 2005.
Sources: ABS; AFMA; APRA; ASIC; Jones Lang LaSalle; RBA

Table 10: Distribution of Loans

Per cent, December 2005

FSI 5: Sectoral Distribution

FSI 15: Geographical Distribution

Sector

All banks(a)

Country/Region

Australian-
owned
banks(a)(b)

Residents

95.9

Australia

68.9

Deposit-takers

0.7

Advanced economies

29.8

Central bank

0.0

Other countries

1.3

Other financial corporations

2.2

Central and eastern Europe

0.2

General government

0.3

Developing Asia (incl. China)

0.8

Non-financial corporations

27.7

Middle East

0.1

Other domestic sectors

65.0

Western hemisphere

0.1

Non-residents

4.1

Other

0.0

Total

100.0

Total

100.0

(a) FSI 5 is on a domestic books basis; FSI 15 is on an Australian-owned
banks basis. See footnote (c) to Table 9 for definitions.
(b) Data for Australia represent loans; data for other countries capture
all claims on those countries.